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Canada is rated as one of the top
five places to do business over the next five years. It
is also predicted to have the highest economic growth of
all G7 countries this year, more than Japan, Germany and
the United Kingdom. As a member of NAFTA, there is
access to the world's richest economy - the United
States.
The Government of Canada welcomes and
encourages international business people to invest their
entrepreneurial expertise, technical skills and
investment capital in Canada's economy. The objective of
the Business Immigration Program is primarily to
promote, encourage and facilitate the immigration of
experienced businesspersons from abroad. This class of
immigrant makes a positive contribution to Canada's
economic development by applying their capital and
knowledge to Canadian business ventures, which in turn
creates jobs for Canadians and permanent residents. As
such, Business class immigration has been very
successful and the Canadian government hopes to attract
15,700 - 16,700 business immigrants in 2002. |
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The Business
Class Immigrant
You may be interested in immigrating to
Canada as an entrepreneur, as a self-employed person or
as an investor. Each of these categories serves
different ends and each has different criteria that must
be met.
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An entrepreneur is an immigrant
who has business experience and the intention and
ability to own and actively manage a business in Canada.
The qualifying Canadian business must create or maintain
employment opportunities for one or more Canadian
citizens or permanent residents other than the
entrepreneur and his or her dependents. Entrepreneurs
must have a minimum net worth of CDN $300,000 and must
meet these requirements within three years of becoming a
permanent resident.
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The "Self-Employed" class
provides an avenue for applicants who are likely to be
successful in Canada as artists, singers, musicians,
actors, athletes or farmers. The person must have the
intention and ability to establish a business in Canada
that will create an employment opportunity for himself
or herself and must make a significant contribution to
cultural activities, athletics or through purchasing and
managing a farm. Although conditions are not imposed the
self-employed persons must have enough money to support
himself/herself and his/her family after arriving in
Canada.
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Investors are defined in the
Immigration Act as persons who have been employed as
business managers or have managed a qualifying business
and have control of a percentage of equity in that
business for at least two years within five years before
the date of the application. They must have a net worth
of at least CDN$800,000 and must invest capital of
CDN$400,000 (approximately US$275,000) with the Federal
Government, which repays the money without interest in
five years. The investment funds are fully guaranteed by
the Federal Government, which allocates the investment
funds to the provinces of Canada, except Quebec, based
on a funding formula. This investment can be financed by
various government approved and recognized banks and
credit unions which are members of the Canada Deposit
Insurance Corporation.
The province of Quebec has its own
immigrant investor program, which it aggressively
promotes. Immigrants must have a net worth of
CDN$800,000 and invest a minimum of CDN$400,000 but are
allowed to borrow a large portion of the capital, and
are paid interest on their investment.
The advantage of immigrating to Canada
under the Investor program is that, unlike with
entrepreneurs, there are no conditions attached to the
permanent residence visa once issued. Permanent
Residence visas issued to Entrepreneurs have a three
year condition attached so as to ensure that the
entrepreneur establishes a business in Canada and
complies with all of the requirements of the program
within three years of landing in Canada. In the event
that an entrepreneur does not satisfy all of the
requirements of the program he and his family may lose
their permanent residence in Canada status and will be
required to leave Canada.
Further, investors are not required to
take an active role in the business enterprise where
their capital is invested. This, however, does not
impede the investor from going into business in Canada
after they have landed in Canada as permanent
residents;provided the investor has sufficient capital
with which to do so.
How the Federal Investor Program
compares to the Quebec Investor Program:
WITH RESPECT TO
THE QUEBEC IMMIGRANT INVESTOR PROGRAM (QIIP):
Investors who apply under this program
must be destined to the province of Quebec. The investor
must file an application for a Quebec Selection
Certificate with one of the six Quebec government
offices located outside of Canada. Once the investor has
been issued a Quebec Selection Certificate he is
required to submit an application for permanent
residence in Canada with the Federal government.
Investors under the QIIP must:
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- have a net worth of at least CDN$800,00 acquired
through lawful economic activities
- have at least three years of management experience
in a lawful and profitable
- undertake to invest CAD$400,000 for five years by
signing an agreement with a financial intermediary: a
stock broker recognized by the Commission des valeurs
mobilières du Québec or a trust company. This
investment will be used to fund a program to assist
small and medium-sized businesses in Québec
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An example of how financing through
one of Quebec's several brokerage firms or banks might
work is as follows:
- The investor makes an initial
investment of approximately CAD$96,000 - CAD$100,000 and
obtains a bank loan of CAD$300,00 to CAD$304,000 which
is secured by the brokerage firm. The initial investment
of CAD$96,000 - CAD$100,000 covers interest on the bank
loan and other financing charges. No balance is refunded
after the 5 year term.
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For CanadianBusiness Class
Immigration (Investor/Entrepreneur)
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